LOCAL TREASURY BILLS (AMENDMENT) BILL

Order for Second Reading read. 2.30 pm

The Minister for Finance (Dr Richard Hu Tsu Tau): Sir, I beg to move, "That the Bill be now read a Second time."

The Bill seeks to amend the Treasury Bills Act to reduce the nominal denomination of new issues of Treasury Bills ("T-bills") from $10,000 to $1,000.

Sir, having a large and diverse investor base is important to increase Singapore's attractiveness as a funding hub, and for the development of an active secondary bond market. Financial intermediaries have alluded that they see much latent potential in the retail sector whose savings can be channelled towards securities investments. The liberalisation of the CPF Investment Scheme has further enlarged the pool of potential funds for investment in securities.

The proposed reduction to S$1,000 will align the nominal denomination of Treasury Bills with the nominal amount for Government securities. This should facilitate greater retail participation in the Treasury Bill market and is in line with the Government's effort to promote the Singapore Government Securities market.

Parliament is requested to allow that every new Treasury Bill issued by the Government be for the sum of $1,000 or a multiple of $1,000.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Dr Richard Hu Tsu Tau].

Bill considered in Committee; reported without amendment; read a Third time and passed.